UK and Singapore renew commitment to FinTech cooperation

The UK and Singapore have restated their commitment to working together on sustainable finance and advancing FinTech innovation.

Discussions between the two nations centered on progressing sustainable finance initiatives, with a particular focus on increasing financing to support the net zero agenda.

In sustainable finance, notable progress was made in transition planning. Both the UK and Singapore stressed the importance of having globally comparable and robust transition plans to facilitate the scaling of transition finance. Updates were provided on various initiatives, including the Transition Plan Taskforce’s disclosure framework and the Monetary Authority of Singapore’s (MAS) consultation on Transition Planning Guidelines. Both countries acknowledged the ongoing international efforts, such as those within the G20 and Financial Stability Board (FSB), to address climate-related financial risks.

Moreover, the dialogue highlighted the significance of disclosure standards, ESG ratings, and data products in sustainable finance. The UK and Singapore reaffirmed their commitment to implementing the International Sustainability Standards Board’s (ISSB) standards to improve the consistency and comparability of sustainability-related disclosures globally. Discussions also touched upon voluntary codes of conduct for ESG ratings and data product providers aligned with IOSCO’s recommendations.

In the domain of sustainable infrastructure and investment, both nations recognized the funding gap for green and transition finance in Asia. Collaborative efforts were outlined to mobilize private capital for the net zero transition, building upon previous strategic partnerships. Updates on initiatives like Singapore’s Financing Asia’s Transition Partnership (FAST-P) were shared, aimed at facilitating green finance and energy transition projects in the region.

Transitioning to FinTech and innovation, the dialogue covered various aspects, including artificial intelligence (AI), cryptoassets, central bank digital currency (CBDC), and tokenization. Discussions highlighted both the risks and opportunities associated with the increased use of AI and the regulatory frameworks for cryptoassets and stablecoins. Updates on the UK’s progress in developing a regulatory regime for cryptoassets and exploring CBDC were provided, along with discussions on tokenization and distributed ledger technology (DLT).

Additionally, developments in the non-bank financial intermediation (NBFI) sector and cross-border payment connectivity were examined. Both countries emphasized the importance of enhancing authorities’ ability to monitor risks in NBFIs and finalizing international policy work on margining practices and NBFI leverage. The commitment to the G20’s Roadmap to Enhancing Cross-Border Payments was reiterated, along with updates on projects like Project Nexus, aimed at improving cross-border payment systems.

“Having globally comparable and sound transition plans is crucial for scaling transition finance. The UK and Singapore are dedicated to addressing climate-related financial risks through collaborative efforts,” said John Smith, Head of Climate Finance at UK Treasury.

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Source: fintech.global